Systems and methods for verifying identities

ABSTRACT

A method for verifying the identity of one party on behalf of another party is provided. The method includes providing a money-transfer system and a communication system that communicates with the money-transfer system; receiving at the money-transfer system from the first party certain verification criteria for confirming the identity of a second party; and storing the verification criteria in the host computer system of the money-transfer system. When an ID is received from the second party at a money-transfer location; the verification criteria is retrieved from the host computer system; and the acceptability of the ID is determined in accordance with the verification criteria. If the identification device is acceptable, identification information is obtained from the identification device; and the identification information is processed to verify the identity of the second party. In other embodiments, a method for pre-verifying the identity of a party and a system for performing the method of the invention are provided.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.12/953,291 filed Nov. 23, 2010 and titled “SYSTEMS AND METHODS FORVERIFYING IDENTITIES, which is a continuation of U.S. patent applicationSer. No. 11/923,481, filed on Oct. 24, 2007, now U.S. Pat. No.7,865,439, entitled SYSTEMS AND METHODS FOR VERIFYING IDENTITIES, whichare all incorporated by reference herein for any and all purposes.

This application is related to co-pending commonly assigned U.S. patentapplication Ser. No. 10/424,562, filed Apr. 25, 2003, entitled “SYSTEMSAND METHODS FOR VALIDATING IDENTIFICATIONS IN FINANCIAL TRANSACTIONS”,which is related to co-pending, commonly assigned U.S. patentapplication Ser. No. 10/424,558, filed Apr. 25, 2003, entitled: “SYSTEMSAND METHODS FOR VALIDATING IDENTIFICATIONS IN FINANCIAL TRANSACTIONS”and co-pending, commonly assigned Provisional U.S. Patent ApplicationNo. 60/465,967, filed Apr. 25, 2003, entitled: SYSTEMS AND METHODS FORPRODUCING SUSPICIOUS ACTIVITY REPORTS IN FINANCIAL TRANSACTIONS”, theentire disclosures of which are incorporated herein by reference for allpurposes.

BACKGROUND OF THE INVENTION

The present invention relates generally to methods and systems forconfirming the identity of a party seeking to be involved in a financialtransaction with another party. Specifically, the invention providesidentification verification methods and systems employing amoney-transfer system having a plurality of transaction locations.

In a face-to-face transaction, positive identification of one party ismany times established through the physical presentation of some sort ofidentification device to the other party, e.g. a driver's license,passport, social security card, biometric feature, etc. In some cases,this identification device is adequate to establish the identity of theparty, particularly if the identification device incorporates a feature,e.g. a picture, signature, etc, that can be easily compared in personwith the physical traits of the party presenting the identificationdevice. However, in other cases, the identification device may becounterfeit or forged, and the party accepting the identificationmaterial may not have the tools, technology and/or training to properlydetect that the identification device is not authentic. Furthermore, inan on-line transaction, one party is not able to physically present theidentification device to the other party. Therefore, in some cases,parties to a transaction, e.g. non-financial institutions, merchants,government agencies, banks, etc. often rely upon faxed copies or otherelectronically-transmitted facsimiles of the identification device toverify identity, sometimes coupled with inquiries to major creditreporting agencies. Again, this identification method is vulnerable toidentity theft, forgery and/or counterfeiting, and has the potential tobe used by an identity thief to perform seemingly valid transactions forfraudulent purposes.

Many people use the services of money-transfer service providers to sendfunds to other people or to purchase negotiable instruments such asmoney orders and travelers checks. Electronic communication andfinancial services networks have now developed to a point that allowssuch transactions to have a nearly global reach, and money-transferservice providers typically have extensive money-transfer systems withlocations in convenient geographies around the world. Unfortunately,some people attempt to use money-transfer service providers to transfermoney for illegal or unethical purposes. As a result, various laws andregulations attempt to thwart this type of activity by requiringpositive identification of individuals involved in certainmoney-transfer transactions; such as, for example, transactions above anestablished value threshold. In order to comply with these laws andregulations, money-transfer service providers and their associates aretypically equipped with the tools, technology and training required toproperly validate various identification devices, either by comparingthe identification device with the physical traits of a consumer orbusiness representative present at a money-transfer location, or byemploying various systems and methods for identity verification that areassociated with the money-transfer system. For example, systems andmethods for confirming the validity of identification devices andidentification information in money-transfer transactions are describedin co-pending U.S. patent applications Ser. No. 09/317,785, filed May24, 1999; Ser. No. 10/424,558, filed Apr. 25, 2003; Ser. No. 10/424,562,filed Apr. 25, 2003; Ser. No. 10/832,809, filed Apr. 26, 2004; and Ser.No. 11/623,956, filed Jan. 17, 2007; all of which are incorporatedherein by reference in their entirety for all purposes.

BRIEF SUMMARY OF THE INVENTION

Embodiments of the present invention provide methods and systems forverifying the identity of a party. In one embodiment, the inventionprovides a method for verifying the identity of one party on behalf ofanother party, e.g. verifying the identity of one party to a pending orpotential financial transaction on behalf of another party to thetransaction. In one embodiment of the invention, a money-transfer systemis provided for making a third-party, in-person verification of theidentity of a party by receiving of one or more identification devices(hereinafter sometimes referred to as an “ID”) provided by the party,obtaining identification information from the ID and processing theidentification information for identity verification.

One embodiment of a method according to the invention includes providinga money-transfer system having a host computer system, a network and aplurality of money-transfer locations with one or more transactionprocessing devices that communicate with the host computer system overthe network, and a communication system that communicates with themoney-transfer system; receiving at the money-transfer system from afirst party over the communication system certain verification criteriafor confirming the identity of a second party; and storing theverification criteria in the host computer system of the money-transfersystem. An identification device may then be received from the secondparty at a money-transfer location; the verification criteria may beretrieved from the host computer system using the transaction processingdevice at the money-transfer location; and the acceptability of theidentification device may be determined in accordance with theverification criteria. If the identification device is acceptable,identification information is obtained from the identification device;and the identification information is processed to verify the identityof the second party. Verification of the identity may then be providedto the first party, as well as the second party if desired.

In one embodiment, the identification information obtained from the IDmay be transmitted to the host computer system, and the host computersystem may be programmed to process the identification information foridentity verification. In another embodiment, the identificationinformation may be processed by an attendant at the money-transferlocation physically comparing the identification information (e.g. apicture or signature) with one or more physical features of the secondparty (e.g. face or on-site signature) while the second party is presentin-person at the money-transfer location. After the identityverification has been made, the second party may be provided with awritten certification of identity that can be presented to the firstparty to complete a pending or potential transaction,. In otherembodiments, the first party may be notified of the results of theidentity verification, e.g. by phone or electronically over thecommunication system, and if the identity verification is successful,the pending or potential transaction with the second party mayautomatically be completed upon such notification.

In another embodiment of the present invention, a method of“pre-verifying” the identity of a party may be provided. Anidentification device may be received from a party at a money-transferlocation of a money-transfer system; identification information may beobtained from the identification device and processed for identityverification. The identity verification results may then be stored inthe host computer system of the money transfer system. When a request isreceived at the money-transfer system, e.g. from the party or fromanother party wishing to enter into a transaction or relationship withthat party, to provide verification of the identity of the party, theidentity verification results may be retrieved from the host computersystem; and the identity verification results may be provided inresponse to the request.

In another embodiment, a system may be provided for verifying theidentity of one party on behalf of another party. The system maycomprise a money-transfer system having a host computer system withstorage media containing verification criteria provided by a first partyfor verifying the identity of a second party, a network, a plurality ofmoney-transfer locations with one or more transaction processing devicesthat communicate with the host computer system over the network, and acommunication system for communicating with the money-transfer system.The money-transfer locations may be adapted to receive an identificationdevice from the second party and obtain identification information fromthe identification device in accordance with the verification criteria.The money transfer system may be adapted to process the identificationinformation to verify the identity of the second party and to thentransmit the identity verification results to the first party over thecommunication system. In one embodiment, the transaction processingdevices at the money-transfer locations are adapted to retrieve theverification criteria from the host computer system, obtain theidentification information from the identification device and totransmit the identification information to the host computer system. Inanother embodiment, the host computer system is programmed to processthe identification information to verify the identity of the secondpart. In yet another embodiment, the system further comprises anidentity verification database system.

BRIEF DESCRIPTION OF THE DRAWINGS

A further understanding of the nature and advantages of the presentinvention may be realized by reference to the remaining portions of thespecification and the drawings wherein like reference numerals are usedthroughout the several drawings to refer to similar components.

FIG. 1 illustrates a system for verifying an ID according to embodimentsof the present invention;

FIG. 2 illustrates a method of verifying an ID according to embodimentsof the present invention;

FIG. 3 illustrates another method of verifying an ID according toembodiments of the present invention.

DETAILED DESCRIPTION OF THE INVENTION

According to the present invention, one party may employ amoney-transfer system of a service provider to verify an ID presented byanother party. Herein, “provider” or “service provider” will refer to amoney-transfer service provider. For example, “provider” may refer to anentity such as Western Union of Englewood, Colo., whose money-transferservice and system of money-transfer locations is well known.Additionally, “associate” will refer to an entity that a money-transferservice provider may enlist to accomplish the money-transfer service atan outlying geographic location, i.e. a “money-transfer location”. Forexample, third parties, such as merchants, financial institutions, andthe like may be “associates” and their geographic location may be a“money-transfer location”. Herein “attendant” will refer to someone withwhom a customer interacts in the transaction process at a money-transferlocation. An attendant may be an employee of a provider or associate,and a money-transfer location may be a location staffed by a provider oran associate. An attendant typically operates a transaction processingdevice, entering information received from the customer and/or relatedto a transaction. Further, although the phrase “money transfer” will beused herein to refer to the type of service normally provided by thesystem employed to confirm ID's in accordance with the presentinvention, that phrase will be understood to mean any financialtransaction involving “value,” which may include money, credits,customer loyalty points, other units of measure, and the like.

Also, herein an identification device (“ID”) will refer to anythingpresented to establish positive identification. Exemplary ID's includeID cards, such as driver's licenses, military cards, employee cards andthe like; passports; biometric features such as finger prints, retinalimages, facial scans, DNA and the like; holographic images; and thelike. ID's may include information that identifies the holder (herein“identification information”), including encoded information that may beread or scanned at a transaction device. Identification information maybe on the face of the ID, e.g. a picture, signature, unique number,etc., an/or may be encoded in a magnetic stripe, a radio frequencygenerator, a one-dimensional or multi-dimensional bar code, or the like.ID's may be government-issued, privately issued, or integrallyassociated with an individual's anatomy.

The money-transfer process and money-transfer systems are well-known.Briefly, a sender presents himself to a service provider or associate ata location offering money-transfer services (“money-transfer location”)and provides value, usually cash, to an attendant. Some serviceproviders now even allow senders to transfer money by logging on to aweb site and initiating money transfers using credit cards or otheraccounts, and such “virtual” locations are considered herein to bemoney-transfer locations. In either case, information may be enteredinto a record at the money-transfer location and that record may betransmitted to and received at a host computer system. The recordtypically includes information that identifies the sender, therecipient, and the amount of money being transferred, among otherthings. A recipient of the money transfer then presents himself toanother money-transfer location of a provider or associate (a “receivesite”) to obtain the money or other value. An attendant at the receivesite verifies the identity of the receiver and gives the receiver thevalue.

At the sending end of the transaction, the transaction information maybe collected in any number of ways. In some cases, the information iscollected by a point-of-sale (“POS”) device specifically designed formoney transfer and related transactions. The device may be operated byan attendant employed by the provider or an associate. In another case,the information may be collected using a computing device runningapplication software specifically designed for money transfer andrelated transactions. In yet another case, the information may becollected by phone when an attendant contacts a customer servicerepresentative (“CSR”) of the provider. The attendant is able to verifythe sender's information and collect funds while the CSR enters theinformation into a transaction record. It also may be the case that thetransaction is initiated by an associate who then must contact a CSRbecause the transaction exceeds certain thresholds. In yet anotherexample, the customer provides some information to a CSR at a remotelocation while also entering some information into a transactionprocessing device by, for example, “swiping” a card through a reader onthe device. Other examples are possible.

For a number of reasons, identity verification is a significant aspectto the money-transfer process. For example, in one instance, it isimportant to verify the identity of the sender. In an attempt to thwartillegal or unethical money transfers, it is helpful to confirm theidentity of a sender, especially on transfers over certain valuethresholds. Transfers over the thresholds may require the provider toobtain additional information from the sender. In some cases, theinformation may be compared to a list of known or suspected criminals.If a sender is a known criminal, identifying transactions initiated bythe individual may provide security and law enforcement personnelassistance in stopping criminal activity such as money laundering,criminal activity funding, and tax evasion. Further, some individualsmay attempt to avoid detection by segmenting a single money transferinto multiple smaller transfers below the thresholds. Thus, providersmay employ measures described herein to relate transactions that mightotherwise appear unrelated.

In an effort to avoid disclosing their identities, some individuals mayattempt to use invalid ID's to establish their identities. Further, awide variety of ID's are in common use, some of which may not berecognizable by attendants. Thus, one difficulty in the effort toestablish positive identification is confirming the validity of ID's andthe acceptability of a particular type of ID.

The present invention provides methods and systems that employ amoney-transfer system to confirm the acceptability of ID types and maybe used to verify the ID's presented by parties involved in variousfinancial transactions other than money transfers. The methods andsystems of the present invention provide for third-party identityverification of ID's at money-transfer locations in convenientgeographies around the world. The money-transfer location may beoperated by either the provider or an associate and is part of theprovider's money-transfer system.

In one embodiment, the invention provides a method of verifying theidentity of a second party on behalf of a first party using verificationcriteria provided by the first party. In another embodiment, theinvention provides a method of providing verification of one party'sidentity to another party upon request. In still another embodiment, theinvention provides a system for providing verification of the identityof one party to another party.

Attention is directed to FIG. 1, which illustrates an embodiment of asystem 100 for providing identity verification according to the presentinvention. Identity verification system 100 includes the basic elementsof a money-transfer system and a communication system 115 by which afirst party may communicate with the money-transfer system. Themoney-transfer system may comprise a host computer system 102, a network104 and a plurality of money-transfer locations having one or more oftransaction processing devices 106, 108, 110 and 112.

Host computer system 102 may include, for example, server computers,personal computers, workstations, web servers, and/or other suitablecomputing devices. Host computer system 102 includes applicationsoftware that programs host computer system 102 to perform one or morefunctions according to the present invention. For example, applicationsoftware resident on host computer system 102 may program host computersystem 102 to process identification information and verify an IDaccording to embodiments of the present invention. Host computer system102 may include one or more of the aforementioned computing devices, aswell as storage devices such as databases, disk drives, optical drives,and the like. The storage devices may include solid state memory, suchas RAM, ROM, PROM, and the like, magnetic memory, such as disc drives,tape storage, and the like, and/or optical memory, such as DVD. Hostcomputer system 102 may be fully located within a single facility ordistributed geographically, in which case a network may be used tointegrate host computer system 102. Many other examples are possible andapparent to those skilled in the art in light of this disclosure.

Network 104 may be the Internet, an intranet, a wide area network (WAN),a local area network (LAN), a virtual private network, any combinationof the foregoing, or the like. Network 104 may include both wired andwireless connections, including optical links. In some embodiments,network 104 may be a transaction-processing network.

The various transaction processing devices may be located at a pluralityof money-transfer locations comprising the money-transfer system, andthese transaction processing devices may be adapted to communicate withhost computer system 102 over network 104. Accordingly, system 100 mayinclude one or more POS devices 106 located at money-transfer locations.POS devices are more fully described in U.S. Pat. No. 6,547,132, issuedon Apr. 15, 2003, the entire disclosure of which is incorporated hereinby reference for all purposes. Essentially, POS devices are terminalsfor receiving transaction information and sending the information tohost computer system 102. For example, POS device 106 may receiveidentification information by capturing it from an ID using a readerintegral to or associated with the POS. POS device 106 also may receiveidentification information from an attendant or customer via a keypad,keyboard, and/or other input device. Other examples are possible.

System 100 also may include one or more computing devices 108 programmedto receive and transmit identification information from customers orattendants. Like POS devices 106, computing devices 108 may be locatedat money-transfer locations or at remote locations.

System 100 also may include one or more Customer Service Representative(CSR) computers 110. CSR computers 110 may be located, for example, at acall center or other money-transfer location operated by the serviceprovider or an associate. CSR computers 110 function much like POSdevices 106 and computing devices 108, except that identificationinformation may be entered by a CSR who is receiving the identificationinformation from a customer or associate by phone, for example. In someexamples, a voice response unit may receive some or all of theidentification information.

System 100 may also include one or more receiving sites 112 thatcomprise money-transfer locations from which customers may receive fundsin a money-transfer transaction. Receive sites 112 may be equipped withone or more POS devices 106 or computing devices 108. The receive sites112 also may be automated teller machines, kiosks (which are more fullydescribed in U.S. patent application Ser. No. 10/225,410, filed on Aug.20, 2002, the entire disclosure of which is incorporated herein byreference for all purposes), merchant store fronts, bank accounts,stored value accounts, and/or the like.

System 100 may also include one or more identity verification databasesystems 114. Identity verification database systems 114 may include anyof the aforementioned databases and/or computing devices. Identityverification database systems 114 may be operated by government entitiesor private enterprises. Identity verification database systems 114 mayinclude data from a single entity, such as driver's license data from asingle State Department of Motor Vehicles, or may include data from anumber of different entities that issue ID's. One example of such acommercial system is provided by Aristotle International, Inc. ofWashington D.C. Another example is the service provided by Acxiom ofLittle Rock, Ark.

Communications system 115 may comprise any of a variety of communicationdevices by which a first party may communicate with host computer system102, either directly or through network 104. For example, communicationsystem 115 may comprise one or more well-known communication devicessuch as, for example, a personal computer, a laptop computer, a personaldigital assistant (PDA), a telephone, a “Smart Phone”, facsimilemachine, etc.

Attention is now directed to FIG. 2, which illustrates a method 200 ofverifying the identity of one party on behalf of another party inaccordance with the present invention. Method 200 may be implemented insystem 100 of FIG. 1 or another suitable money-transfer system. Itshould be noted that method 200 is exemplary only, and other embodimentsmay have more or fewer operations than the example of FIG. 2. Further,the operations may be carried out in a different order than thatdescribed herein.

At block 201, a first party may establish a relationship with amoney-transfer service provider that provides a money-transfer system.For example, the first party may enter into a contract or otherarrangement with a money-transfer service provider by which the firstparty may communicate certain verification criteria to the serviceprovider's money-transfer system and the service provider agrees toprovide identity verification services for a fee through themoney-transfer system in accordance with the verification criteria. Thefirst party may be a merchant, a bank, an individual or any other entitythat wishes to verify the identity of one or more other parties; forexample, a second party with which the first party is contemplating afinancial transaction. Although the invention is herein described in thecontext of a commercial transaction, it is contemplated that theinvention may also find use in non-commercial situations in which it isnecessary or desirable for one party to verify the identity of anotherparty, e.g. in background checks, due-diligence investigations,pre-marital investigations, pre-employment investigations, clubmembership investigations, and the like. In one embodiment, the firstparty and/or other parties may pay the identity verification fee to themoney-transfer service provider.

At block 202, the money-transfer system may receive verificationcriteria from the first party over communication system 115, and theverification criteria may be stored in host computer system 102 of themoney-transfer system at block 203 for future use. Verification criteriamay specify the types of IDs, identification information, and/orprocedures that must be obtained from a second party to verify theidentity of the second party. For example, the criteria may include arequirement that the second party must physically present a picture IDat a money-transfer location, and that the picture on the ID must bephysically matched by the attendant at the money-transfer location withthe actual face of the second party. As another example, the criteriamay include a requirement that the attendant obtain a signature of thesecond party at the location, and that the obtained signature bephysically matched by the attendant with the signature on the ID. Thecriteria may also include a requirement that certain specifiedidentification information must be obtained from the second party and/orthe ID; for example, a scanned image of the ID, ID numbers or codes,biometric samples such as a fingerprint or facial scan, answers tocertain pre-determined questions such as name, address, phone number,social security number, etc. and other questions the responses to whichare personal to the second party, e.g. mother's maiden name, pet's name,first car, etc. The criteria may then require that the identificationinformation be transmitted to host computer system 102 and/or to IDverification system 114 for further processing.

At block 203, the first party and a second party propose to enter into atransaction, relationship, etc. in which the parties cannot physicallymeet together, e.g. an on-line purchase, sale, investment or otherremote transaction. Before completing the proposed transaction, thefirst party may wish to verify the second party's identity in accordancewith the verification criteria. Accordingly, the first party may requirethe second party to visit a money-transfer location of system 100 for anidentity verification, and may inform the second party of theverification criteria that the second party will be required to provideat the money-transfer location. Since the service provider'smoney-transfer system has an extensive network ofgeographically-dispersed money-transfer locations, including those thatare accessible through a computing device 108 or CSR computer 110, oneor more of the money transfer locations of system 100 may be identifiedat block 205 as being convenient for the second party to visit. At block206, the second party may visit the money-transfer location and requestthat an identity verification be conducted on behalf of the first party.At block 207, the first party's verification criteria stored in hostcomputer system 102 at block 202 may be retrieved at the money transferlocation. For example, an attendant or the second party may retrieve theverification criteria using a POS device 106, a computing device 108, orother suitable transaction processing device at the money-transferlocation which communicates with host computer system 102, or thelocation may be equipped with a phone for communicating with a CSR at aremote location that has access to a CSR computer 110 that iscommunication with host computer 102. The verification criteria may beretrieved from host computer system 102, for example, by selecting thefirst party's name from a list of names displayed on the transactionprocessing device, by entering an identifying code associated with thefirst party into the transaction processing device, or by any othersuitable method for retrieving the verification criteria from thestorage media of computer system 102.

At block 208, one or more IDs (collectively “ID”) may be received fromthe second party at the money-transfer location, and a determination maybe made at block 208 if the ID meets the verification criteria retrievedat block 207. If the determination at block 208 is that the ID does notmeet the verification criteria; for example, if the ID is not in theformat required by the verification (driver's license, passport, etc.)or does not contain a required feature (picture, signature, etc.), theID may be rejected at block 209, e.g. by an attendant at themoney-transfer location or by the transaction processing device. Atblock 211, the parties may be notified of the ID rejection by anysuitable means, e.g. the second party may be notified of the IDrejection at the money-transfer location either orally or in writing byan attendant, or through a display on the transaction processing device,and the first party may be notified through communication system 115.Based on the ID rejection, either or both of the parties may choose toabort the pending transaction at block 212.

If the ID received from the second party meets the verification criteriaat block 209, identification information may be obtained from the ID atblock 213. As examples of identification information, mention may bemade of a driver's license number, a passport number, a stateidentification number, an alien identification number, a governmentidentification number, a social security number, a fingerprint, aretinal scan, a facial scan and DNA information. The identificationinformation may then be processed for identity verification at block214; for example, in accordance with any of the processes employed bymoney-transfer providers to verify the identity of parties involved in amoney-transfer transaction.

As one example, the identification information may be obtained andprocessed for identity verification according to the teachings ofpreviously-incorporated parent U.S. patent application Ser. No.10/424,562. In accordance with those teachings, identificationinformation may be obtained at block 213 by entering the informationinto a transaction processing device such as POS device 106, a computingdevice 108, or other suitable transaction processing device at themoney-transfer location. The identification information may be obtainedby “swiping” an ID card through a reader, or otherwise obtaining theinformation directly from an encoded ID. In another embodiment,identification information may be obtained merely by having the secondparty recite the ID number (e.g., a social security number) to anattendant, which the attendant enters into the transaction processingdevice. The identification information may also be obtained by a CSRreceiving the information at a remote location over the phone. Inaddition to a single ID number, the identification information may beinclude a combination of numbers, letters, and/or other characters, abiometric feature, an image, and/or the like.

Processing the identification for identity verification at block 214 mayinclude transmitting the identification information obtained at block213 to host computer system 102 from a transaction processing device atthe money-transfer location or from CSR computer 110. The identificationinformation may then be processed for identity verification using thehost computer system 102. In one embodiment, the identificationinformation may include a number (which may include a combination ofnumerals, letters, and other characters), and computer system 102 may beprogrammed to compare the format of the number to known ID numberformats to identify the ID type. Based on the ID type, theidentification information may be transmitted by host computer 102 to anidentity verification database system 114, which has information in oneor more databases related to that specific ID type. Examples of suchdatabases include driver's license database, social security database,identification verification company database, previous-used “valid” IDdatabase, and credit reporting database. The identification informationthen may be compared to data in one or more of the databases todetermine if a match exists. In some embodiments, computer system 102may be programmed to “risk score” the identification information toassess the likelihood that the ID is valid. For example, if theidentification information includes the customer's social securitynumber and date of birth, the risk score may be based on the likelihoodthat a person of that age was issued the specific social securitynumber. More detail regarding risk scoring of the identificationinformation is found in previously-incorporated patent applications,e.g. U.S. patent application Ser. No. 10/424,562.

The processing of the identification information at block 214 may alsoinclude determining if the ID received from the second party at block208 is of a known format. For example, if the identification informationincludes a number having a particular number of characters with specificcharacters in specific locations, then the identification informationmay be known as a driver's license number, for example. The same conceptmay be applied to other types of identification information. Forexample, a biometric feature may be encoded in a two-dimensional barcode. The identification information also may have a recognizable formatthat identifies it as, for example, a military ID. In another example,the identification information may be within a particular numericalsequence that identifies it as, for example, a passport. As anotherexamples, the identity of the second party may be verified based on thephysical characteristics of the ID (e.g., its size, color, layout,and/or the like, the presence of a hologram, photo, and the like). Thus,the processing of the identification information at block 213 mayinclude a comparison of the format of the identification information toknown formats to determine if the ID from which the information wasobtained is known.

Processing of the identification information at block 214 may includemerely comparing the identification information obtained at block 213from a swiped ID to the information actually printed on the ID. Theswiped identification information may be obtained at block 213 byemploying a transaction processing device having magnetic reader, a one-or two-dimensional bar code reader, or the like. The swipedidentification information may include an image of the second party towhich an attendant can physically compare to the second party in-personor to the second party's image on the ID. Also in some embodiments, anattendant at the money-transfer location may obtain identificationinformation at block 213 directly from the ID, e.g. by viewing a pictureor signature on the ID, and verify the identity of the second party atblock 213 by physically matching the picture or signature on the ID withthe actual face or signature of the second party.

After processing of the identification information for identityverification is completed at block 214, a determination is made at block215 as to whether the second party's identity can been successfullyverified. If not, the ID is rejected at block 210. If the second party'sidentity is determined to have been successfully verified at block 215,the parties may be notified of the verification at block 216. Thisnotification may be made electronically, by phone, by facsimiletransmission, by mail, or other suitable communication means, includingcommunication system 115 of system 100. Upon such notification, theproposed transaction may be completed by the parties at block 217. Insome embodiments, the first party may arrange for the transaction to becompleted automatically, e.g. upon receipt of the notification overcommunication system 115. In other embodiments, one or both parties mayreceive a written certification of identity at block 218, e.g. a writtenreceipt, a written notice with an confirmation number, etc. In oneembodiment, the second party may present the verification evidence tothe first party to allow the completion of the transaction at block 217.

FIG. 3 illustrates a method 300 for providing verification of theidentity of a party upon request according to another embodiment of theinvention. Method 300 may be used by a money-transfer service provider,for example, to provide an ID verification service to any entity orindividual (“party”) wishing to have its identity verified by anindependent third party in advance, i.e. the money-transfer serviceprovider may provide a “pre-verification” of the party's identity.

At block 301, a party may establish a relationship with a money-transferservice provider that provides a money-transfer system and acommunication system by which the party may communicate with the moneytransfer system, e.g. system 100 shown in FIG. 1. For example, the partymay contract with the service provider to provide pre-verificationservices for a fee. At block 302, the party may visit a money-transferlocation of the money-transfer system, either in person or through atransaction processing device such as a computing device 108. At block303, the money transfer location may receive an ID from the party inaccordance with verification criteria established by the serviceprovider. At block 304, identification information may be obtained fromthe ID, e.g. in the manner previously described in connection with block213 in FIG. 2. The identification information may then be processed foridentity verification at block 305 e.g. in the manner previouslydescribed in connection with block 214 in FIG. 2. At block 306, theverification results may be stored, e.g. in host computer 102 for futureuse. In some embodiments, the service provider may require the party torepeat the steps represented by blocks 302-306 from time to time toassure that the identification information and verification results arekept up-to-date.

At block 307, the service provider may receive a request to provide averification the party's identity. The verification request may comefrom the party itself, an entity that is authorized by the party torequest an identity verification, or an entity that has entered into arelationship with the service provider to provide identity verificationof the party upon request. At block 308, the service provider mayretrieve the successful verification results from the host computer, anda determination may be made at block 309 as to whether the identity ofthe party has been verified. If not, the service provider may refuse toprovide a verification of the party's identity at block 310. If theparty's identity is determined to have been successfully verified atblock 309, and verification of the party's identity may be provided. Inone embodiment, this verification may take the form of a certificationof identity that is delivered to the requestor, or as directed by therequestor, in written or electronic form.

Having described several embodiments, it will be recognized by those ofskill in the art that various modifications, alternative constructions,and equivalents may be used without departing from the spirit of theinvention. Additionally, a number of well known processes and elementshave not been described in order to avoid unnecessarily obscuring thepresent invention. For example, those skilled in the art know how toarrange computers into a network and enable communication among thecomputers. Accordingly, the above description should not be taken aslimiting the scope of the invention, which is defined in the followingclaims.

1. (canceled)
 2. A method for verifying the identity of a second partyon behalf of a first party, the method comprising: receiving from thefirst party, by a computer system, verification criteria for verifyingthe identity of the second party, wherein the verification criteriaspecifies at least a verification procedure and a type of identificationthat is acceptable for use in the verification procedure; transmitting,by the computer system, the verification criteria to an associatelocation; performing, at the associate location, the verificationprocedure specified by the verification criteria using an identificationdocument presented by the second party; and determining, with thecomputer system, that the identification document presented by thesecond party satisfies the verification criteria received from the firstparty.
 3. The method for verifying the identity of a first party onbehalf of a second party of claim 2, wherein determining that theidentification document presented by the second party satisfies theverification criteria comprises: receiving from the associate location,by the computer system, identification information retrieved from theidentification document presented by the second party; and comparing,with the computer system, the identification information to previouslystored information.
 4. The method for verifying the identity of a firstparty on behalf of a second party of claim 2, the method furthercomprising: notifying, with the computer system, at least one of thefirst party or the second party that the identity of the second partyhas been verified in accordance with the verification criteria.
 5. Themethod for verifying the identity of a first party on behalf of a secondparty of claim 2, wherein performing the verification procedurespecified by the verification criteria comprises: determining whetherthe identification document presented by the second party is the type ofidentification that is acceptable for use in the verification procedureper the verification criteria.
 6. The method for verifying the identityof a first party on behalf of a second party of claim 2, wherein theverification criteria specifies a plurality of verification procedures.7. The method for verifying the identity of a first party on behalf of asecond party of claim 6, wherein all of the verification proceduresspecified by the verification criteria must be satisfied to verify theidentity of the second party.
 8. The method for verifying the identityof a first party on behalf of a second party of claim 6, wherein atleast one of the verification procedures specified by the verificationcriteria must be satisfied to verify the identity of the second party.9. The method for verifying the identity of a first party on behalf of asecond party of claim 2, the method further comprising: storing, by thecomputer system, a record of each verification procedure performed andresults thereof.
 10. A system for verifying the identity of a secondparty on behalf of a first party, the system comprising: a computersystem configured to at least: receive, from the first party,verification criteria for verifying the identity of the second party,wherein the verification criteria specifies at least a verificationprocedure and a type of identification that is acceptable for use in theverification procedure; transmit the verification criteria to anassociate location; perform the verification procedure specified by theverification criteria using an identification document presented by thesecond party; and determine that the identification document presentedby the second party satisfies the verification criteria received fromthe first party.
 11. The system for verifying the identity of a secondparty on behalf of a first party of claim 10, wherein determining thatthe identification document presented by the second party satisfies theverification criteria comprises: receiving, from the associate location,identification information retrieved from the identification documentpresented by the second party; and comparing the identificationinformation to previously stored information.
 12. The system forverifying the identity of a second party on behalf of a first party ofclaim 10, wherein the computer system is further configured to: notifyat least one of the first party or the second party that the identity ofthe second party has been verified in accordance with the verificationcriteria.
 13. The system for verifying the identity of a second party onbehalf of a first party of claim 10, wherein performing the verificationprocedure specified by the verification criteria comprises: determiningwhether the identification document presented by the second party is thetype of identification that is acceptable for use in the verificationprocedure per the verification criteria.
 14. The system for verifyingthe identity of a second party on behalf of a first party of claim 10,wherein the verification criteria specifies a plurality of verificationprocedures.
 15. The system for verifying the identity of a second partyon behalf of a first party of claim 10, wherein the computer system isfurther configured to: store a record of each verification procedureperformed and results thereof.
 16. A non-transitory machine readablemedium having instructions stored thereon for verifying the identity ofa second party on behalf of a first party, the instructions executableby a processor to at least: receive, from the first party, verificationcriteria for verifying the identity of the second party, wherein theverification criteria specifies at least a verification procedure and atype of identification that is acceptable for use in the verificationprocedure; transmit the verification criteria to an associate location;perform the verification procedure specified by the verificationcriteria using an identification document presented by the second party;and determine that the identification document presented by the secondparty satisfies the verification criteria received from the first party.17. The non-transitory machine readable medium having instructionsstored thereon for verifying the identity of a second party on behalf ofa first party of claim 16, wherein determining that the identificationdocument presented by the second party satisfies the verificationcriteria comprises: receiving, from the associate location,identification information retrieved from the identification documentpresented by the second party; and comparing the identificationinformation to previously stored information.
 18. The non-transitorymachine readable medium having instructions stored thereon for verifyingthe identity of a second party on behalf of a first party of claim 16,wherein the instructions are further executable by the processor to:notify at least one of the first party or the second party that theidentity of the second party has been verified in accordance with theverification criteria.
 19. The non-transitory machine readable mediumhaving instructions stored thereon for verifying the identity of asecond party on behalf of a first party of claim 16, wherein performingthe verification procedure specified by the verification criteriacomprises: determining whether the identification document presented bythe second party is the type of identification that is acceptable foruse in the verification procedure per the verification criteria.
 20. Thenon-transitory machine readable medium having instructions storedthereon for verifying the identity of a second party on behalf of afirst party of claim 16, wherein the verification criteria specifies aplurality of verification procedures.
 21. The non-transitory machinereadable medium having instructions stored thereon for verifying theidentity of a second party on behalf of a first party of claim 16,wherein the instructions are further executable by the processor to:store a record of each verification procedure performed and resultsthereof.